TOP Practices in Post Award Administration Leading Excellence in Research Costing Practices November 3, 2016

Best of the Best: TOP Practices in Post Award Administration Marisa Zuskar, Huron Consulting Group

Agenda Overview of 2013 Study of Post-Award Best Practices Outcomes: General Overdraft Monitoring Invoicing Accounts Receivable Financial Reporting Closeout

Overview of 2013 Study of Post-Award Best Practices

Broad Objectives: Minimize overdrafts and material write-offs Support compliance with sponsor reporting requirements and sponsor regulations Improve transparency in management of awards Develop appropriate metrics around sponsored project management Identify analytical tools to support management, oversight and reporting Improve cash flow

Peer Review & Analysis: Identify a set of top research institution peers Conduct an initial survey to identify effective post-award processes based on high-level performance metrics Issue a preliminary data request Conduct site visits and interviews: Processes Technology Enabling organizational infrastructure Consolidate findings and Huron’s industry perspective into best practices for business process efficiency

General: Document processes and procedures Emphasize performance management Elevate the role of the “supervisor” Define and document service level agreements Demonstrate performance in line with SLAs via dashboard reporting Use dashboards to facilitate department accountability and responsiveness

General: Decouple the non-final invoicing function from reconciliation/financial reporting function Integrate financial reporting with the customer service/direct research administration assistance Consolidate all award set-up functions Build award set-up “account templates” Mandatory quarterly review process for PIs and Award Administrators Defined timeframe for review & resolution Document that the review occurred Track and monitor review status Conduct post-audit sampling

Overdraft Monitoring: Report on specialized types of overdrafts (Pre-Award/Accelerated Spending vs. true-overdraft) Focus overdraft monitoring resources on resolution and mitigation efforts (not just dept. follow-up)

Invoicing: Build an invoicing “Worklist” including useful data(status!) made available via a dashboard Formalize invoicing (based of posted expenditures) as a back-office function Flag invoices requiring departmental preparation and require completed invoices be distributed by central units Designate signature authority to billing staff Use technology to automate the invoice process and stakeholder alerts

Accounts Receivable: Define AR escalation procedures including department representatives and investigators Incorporate “low overhead” steps into the receivables follow-up procedures (balance forward) Systematically track the status/state of collection efforts Include outstanding payment amount in communications to the PI regarding technical deliverables

Financial Reporting: Build a reporting “Worklist” including useful data(status!) made available via a dashboard Document a consistent financial reporting “order of events” Prepare and provide a preliminary financial reconciliation of an award account to department administrators Define a timeframe by which all allowable transactions must post to the GL (i.e. 5 days prior to the sponsor due date) Establish “exception circumstances”

Financial Reporting: Without department concurrence, submit financial reports with only those allowable expenditures posted to the ledger Leverage well trained and educated staff to generate, sign and submit financial reports

Closeout: Include a Closeout transaction to the Worklist Eliminate “pushed” notification in favor of the use of a dashboard Expand the “At-Risk” Pre-Award Account process to amendments or No Cost Extensions Systematically prevent the posting of payroll after the award end date by pay period date Develop a department AND the central unit Closeout Checklist Build a department-focused Closeout Reconciliation Tool

Closeout: Establish milestones/deliverables on the Worklist for Patent/Invention Reporting and other deliverables Clarify that technical deliverables are the responsibility of the Principal Investigator and central units do not have oversight or monitoring responsibility Decouple the expenditure closeout tasks from the revenue closeout tasks Centrally document and track record retention periods

Next Steps

Next Steps for Implementation: Determine options that might work for you And congratulate yourself on wat you already are doing! Obtain consensus on a prioritized list Consider what else is going on…. Communicate the priorities and encourage feedback Develop individual project plans Develop a master workplan